The recent surge in labour protests over electricity price hikes in Nigeria is unfolding amid significant changes in the country’s power sector governance, driven by the new Electricity Act 2023 signed by President Bola Tinubu.

This landmark legislation decentralizes electricity regulation, empowering states to manage their own electricity markets, including tariff setting, generation, transmission, and distribution within their borders.

New Electricity Reform in Nigeria

Under the Electricity Act, states such as Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi have already assumed control over their electricity markets, with others like Lagos, Ogun, Niger, and Plateau expected to complete the transition by September 2025.

This decentralization aims to increase efficiency, attract private investment, and improve electricity access by allowing states to tailor policies to local needs.

However, this shift has coincided with the Nigerian Electricity Regulatory Commission (NERC) and state regulators implementing tariff adjustments that have sparked widespread discontent.

Labour unions, led by the Nigeria Labour Congress (NLC), have condemned the tariff hikes as unjust and economically oppressive, especially given Nigeria’s prevailing inflation, low wages, and inadequate electricity supply.

The NLC describes the increases as “economic violence,” warning of nationwide protests if the government and state regulators do not reconsider the pricing policies.

The protests reflect deep frustration that despite higher tariffs—often linked to the migration of consumers to higher tariff bands—many Nigerians still face erratic power supply or “paying for darkness.”

Labour unions argue that tariff hikes are premature without guaranteed improvements in service quality and accuse the government of shifting the subsidy burden onto consumers without adequate safeguards for vulnerable populations.

The Electricity Act’s decentralization also raises concerns about regulatory capacity and coordination.

While states now have autonomy to regulate and set tariffs, questions remain about their readiness to manage complex power markets, handle subsidy arrangements, and avoid conflicts with federal oversight by NERC.

Some experts warn that without clear frameworks and capacity building, tariff policies could become inconsistent, exacerbating consumer grievances.

In response, the federal government has launched initiatives such as the National Mass Metering Programme to improve billing transparency by distributing 10 million prepaid meters nationwide in 2025, aiming to reduce estimated billing disputes that fuel consumer anger.

The electricity reforms hold promise for improved market competitiveness and localized solutions, the current tariff hikes amid service challenges have provoked strong resistance from labour groups demanding fair pricing and better electricity access.

The government and state regulators face the urgent task of balancing fiscal reforms with social equity to ensure stability and progress in Nigeria’s electricity sector.